INVENTORY MANAGEMENT
since on-time delivery is critical, having products inventory is important. Along with this,it is important that the inventory be accurate in the computer system. The inventory part activity can be checked on the compute. A manual count of inventory is necessary to ensure its accuracy. Material constantly being used and it is important to keep track of where the inventory is going and how much is used. Swisher Systems remedies this situation with an inventory requisition form that is manually filled out by anyone who takes material out of the stockroom.
Recently, the material manager requested 25 pounds of a specific chemical substance, based on the bill of materials, The price at this level would have been $93 per pound. Mike purchased 500 pounds at only $45 per pound. According to Mike, this was successful because the product would not become obsolete and it is used on a regular basis. "This points out the disadvantage of SIM 4500, it is not able to recommend volume buying because it looks solely at the bill of materials.